The bill would repeal what backers said was an outdated law prohibiting commerce using anything but U.S. currency.

"This bill is intended to fine-tune current law to address Californians' payment habits in the mobile and digital fields," said the bill's author, Democratic Assemblyman Roger Dickinson in a press release.

He cited the popularity of bitcoin, and added that under the current law, even gift cards and reward points from retailers could be considered illegal.

"In an era of evolving payment methods, from Amazon coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives," Dickinson said.